A bill seen as critical in the push to move forward with the Trans-Pacific Partnership (TPP) trade deal cleared the Senate on June 24 following weeks of debate over the legislation.
Trade Promotion Authority (TPA) passed through the Senate on a 60-38 vote and will give President Barack Obama the power to negotiate trade deals before presenting them to Congress, allowing for discussions on the important Pacific free trade agreement to move forward, NPR reported. Party in-fighting had halted the passage of TPA, or fast-track authority, as Obama found himself pitted against other Democratic authorities such as Senate Democratic Leader Harry Reid (D-Nev.) and House Minority Leader Nancy Pelosi (D-Calif.).
Though TPP is an important part of Obama's trade agenda, many Democrats and their labor union supporters are opposed to the trade partnership. Much of the backing for TPA has come from the other side of the aisle, where Republicans want to see the Pacific trade agreement passed.
How fast-track authority will help move along TPP discussions
Fast-track authority will do much to speed up the TPP negotiations. The expedited process implemented by TPA will last until 2018, and allow the White House to send trade bills directly to Congress for an up-or-down vote. Lawmakers will not be able to amend the bills, nor will the Senate have the power to filibuster the agreements. Several times the progress of fast-track authority was impeded by opponents in the House and the Senate, but with its passage Obama will find it much easier to negotiate and finalize the TPP deal he wants passed.
Many trade deals since the North American Free Trade Agreement (NAFTA) have been passed using fast-track authority. It assures foreign negotiators that once a bill is finalized and sent to Congress for a vote, U.S. lawmakers will not be allowed to continue altering the legislation through amendments. While Congress has yet to vote down a fast-track bill, TPP is likely to receive some opposition once finalized, and Obama and the 11 other nations involved in negotiations will likely experience further obstacles in getting the trade deal itself passed.
TPP would be the first trade deal of its kind for the Pacific Rim region, PBS explained. The countries participating in the negotiations comprise 40 percent of global output and 25 percent of global exports of goods and services. The real incomes of member countries will grow by $285 billion over baseline projections by 2025, a 1 percent increase that would continue indefinitely.
The obstacles ahead for TPP
With all 12 nations involved eager to move the partnership along for a variety of reasons, the passage of TPA must come as a relief to the country's leaders. TPP negotiations could conclude as soon as August 2015, the news sourced noted. However, some roadblocks still exist, and PBS explained the issues that could prove to be obstacles for TPP moving forward.
For example, while all countries involved agree on high standards for protecting intellectual property rights, sticking points still exist. How to safeguard trade secrets, internet service providers' liability for transmitting illicit material the period of data exclusivity for costly drug tests are all subjects that could prove contentious. Market access talks between Japan and the U.S. have also proven difficult. Japan isn't in favor of eliminating tariffs on a number of sensitive agricultural imports. Other countries are waiting for the two countries to come to an agreement on tariffs before they make their own offers on the subject.
There are also issues on the subject of state-owned enterprises and the competitive advantage they may hold over private entities. For example, the transition period before the playing-field is made level between state-owned and private enterprises has proven a contentious talking point. The labor and environmental standards of the various nations involved in negotiations must also be harmonized for the bill to progress.
The Senate, in addition to passing TPA, also cleared a bill that included trade preferences for African nations called Trade Adjustment Assistance (TAA). The bill designed to aid workers hurt by international trade had attached to it a measure that would extend trade preferences for sub-Saharan African nations for 10 years.